Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2021 (to 30/Jun)||3.1||10.2||2.7|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|ETFS Physical Gold||Commodity||GB||6.4|
|CVS Health Corp||Equity||US||5.0|
|Wheaton Precious Metals Corp||Equity||US||4.1|
|Roche Holding AG||Equity||CH||4.0|
|Wharf Real Estate Investment||Property||HK||3.8|
Monthly Commentary – June 2021
- Global equities (+1.4%) took fright when the US Federal Reserve brought forward to 2023 the date by when it expected US interest rates would first rise—but later settled as the Fed downplayed inflation, supported by positive economic data and vaccination rollout
- Developed market equities (+1.4%) rose with US bourses (+2.8%) outperforming on the $1 trillion infrastructure stimulus announcement and the gradual return to normalcy—emerging markets (+1.3%) also rose, led by oil-driven Brazil (+5.5%) and Russia (+4.1%)
- Developed market bond yields declined despite US and Eurozone inflation rising faster than expectations—the Fed attributes the rise in inflation to transitory factors
- The US dollar appreciated against the euro (-3%), British pound (-2.8%) and Japanese yen (-1.4%)—as investors bet that the US Fed would not tolerate runaway inflation after it brought forward its anticipated rate-hike timeline from 2024
- Commodities retraced as the dollar strengthened—precious metals gold (-6.9%) and silver (-6.7%) and industrial bellwether copper (-7.6%) fell sharply
- Swiss healthcare company, Roche (+8.4%) and the Hong Kong real estate developer, Wharf Holdings (+10.4%) contributed most to the fund’s performance—commodity geared stocks Freeport-McMoran (-13.1%) and FMC (-6.9%) were the key detractors
- The rand (-4.0% vs the US dollar) retraced some of its recent gains on dollar strength, lower commodity prices and a rampant COVID-19 third wave—while further short-term strength is possible, the unit remains structurally vulnerable longer term
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
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